The champagne, perfume and luxury goods empire LVMH is snapping up a 17% stake in Hermès International, the 173-year-old Parisian purveyor of handbags and silk scarves that has enjoyed a roaring trade from ultra-wealthy shoppers seemingly immune to the recession.

LVMH described the €1.45bn (£1.29bn) stake, disclosed on Saturday, as a strategic holding in "one of the jewels of the luxury industry" and moved to squash speculation swirling around the markets in recent weeks that it aims to buy Hermès outright: "LVMH has no intention of launching a tender offer, taking control of Hermès nor seeking board representation."

Run by billionaire Bernard Arnault, LVMH owns brands ranging from Moët champagne and Hennessy cognac to fashion labels Marc Jacobs and Donna Karan. Traders speculated earlier this month that the group might offload its alcohol arm to Britain's Diageo in order to raise money for a move on Hermès, although this was firmly denied by LVMH.

Hermès, which is under the majority ownership of its founding Dumas family, has bucked the economic downturn, chalking up a 20% surge in sales during the first half of 2010, aided by strong sales in Asia, particularly to China's emerging class of affluent fashionistas.

The luxury goods industry as a whole has benefited from a flight to quality during the credit crunch. Arnault remarked earlier this year that nouveau riche "bling" was out of fashion and that shoppers wanted authentic, enduring brands.